The 2014 Pension Reform Bill has been signed into law to replace the old pension law, which has been in operation since 2004. One of the key changes to the Act includes the increase in minimum contribution from 7.5% of basic pay, housing, and transport allowance to 10% of monthly emolument for employers, and a change from 7.5% of the same basis to 8% of monthly emolument for employees.
Also, a private sector company is required to participate in the pension scheme where it has at least 15 employees, instead of five employees based on the old law. Employers affected by these changes need to take immediate steps to ensure full compliance.
Last Reviewed - 19 December 2018